Stock markets lure more cash
By Lydia Chen |
March 3, 2011, Thursday
|
Print Edition
Print Edition
CHINESE mainland stock markets attracted more funds in February, lifting investors' hopes that a better liquidity environment may help boost share prices.
Total funds in A-share accounts added up to 1.4 trillion yuan (US$213 billion), a jump of 10 million yuan from January, according to data jointly released yesterday by Shanghai Securities News and SWS Research Co.
The first increase in three months was considered a good sign by analysts, who said the market is now recovering from poor liquidity, a key factor behind market fluctuations in past months.
December saw a fund outflow of 10 billion yuan, followed by another 10 billion yuan in January.
The outflows, coupled with repeated tightening by the People's Bank of China, increased concerns that market momentum may not last if funds are in short supply.
The February increase was partly due to funds pumped in by individual investors. Individual investors added 65 billion yuan, up 50 percent from January, to the market - the most since November.
A drop in new listings and additional share sales were also attributed to February's increase.
In February, funds raised by firms issuing more shares dropped 10.7 billion yuan from January to 53.6 billion yuan. Capital raised from initial public offerings dropped sharply from 43.1 billion yuan in January to 25.9 billion yuan last month.
The home appliance industry was the biggest beneficiary from last month's money inflow among 23 monitored industries. Other favorites included non-ferrous metals, IT device producers and electronic component makers.
Financial firms were the least popular among investors.
Total funds in A-share accounts added up to 1.4 trillion yuan (US$213 billion), a jump of 10 million yuan from January, according to data jointly released yesterday by Shanghai Securities News and SWS Research Co.
The first increase in three months was considered a good sign by analysts, who said the market is now recovering from poor liquidity, a key factor behind market fluctuations in past months.
December saw a fund outflow of 10 billion yuan, followed by another 10 billion yuan in January.
The outflows, coupled with repeated tightening by the People's Bank of China, increased concerns that market momentum may not last if funds are in short supply.
The February increase was partly due to funds pumped in by individual investors. Individual investors added 65 billion yuan, up 50 percent from January, to the market - the most since November.
A drop in new listings and additional share sales were also attributed to February's increase.
In February, funds raised by firms issuing more shares dropped 10.7 billion yuan from January to 53.6 billion yuan. Capital raised from initial public offerings dropped sharply from 43.1 billion yuan in January to 25.9 billion yuan last month.
The home appliance industry was the biggest beneficiary from last month's money inflow among 23 monitored industries. Other favorites included non-ferrous metals, IT device producers and electronic component makers.
Financial firms were the least popular among investors.
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